CNT : Announcement of 2017 Interim Results

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CNT GROUP LIMITED 北 海 集 團 有 限 公 司

(Incorporated in Bermuda with limited liability)

(Stock Code: 701)

835

30,770

-97.3%

0.04

1.62

-97.5%

ANNOUNCEMENT OF 2017 INTERIM RESULTS FINANCIAL HIGHLIGHTS Six months ended 30 June 2017 2016 (Unaudited) (Unaudited) HK$'000 HK$'000

Change

Results

Revenue

Gross profit

Gross profit margin Profit attributable to

shareholders of the Company Earnings per share (HK cents)

Basic and diluted

492,318 127,044 25.8%

468,453

167,151

35.7%

+5.1%

-24.0%

-27.7%

As at As at 30 June 31 December 2017 2016 (Unaudited) (Audited) HK$'000 HK$'000

Change

Financial Position

Total cash and bank balances (including cash and cash

equivalents, structured deposits and pledged deposits)

Bank and other borrowings

263,955 170,355

367,311

165,918

-28.1%

+2.7%

Gearing ratio

Net asset value per share (HK$)

13.9% 0.78

13.7%

0.78

+1.5%

0.0%

INTERIM RESULTS

The board of directors (the "Board") of CNT Group Limited (the "Company") presents the unaudited consolidated results of the Company and its subsidiaries (collectively referred to as the "Group") for the six months ended 30 June 2017 together with comparative amounts for the corresponding period in 2016. The condensed consolidated interim financial statements have not been audited, but have been reviewed by the Company's audit committee.

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS

For the six months ended 30 June 2017

Six months ended 30 June

Notes	2017 (Unaudited) HK$'000		2016 (Unaudited) HK$'000
REVENUE	3	492,318		468,453
Cost of sales	(365,274)		(301,302)
Gross profit	127,044		167,151
Other income and gains, net	3	6,008		6,297
Selling and distribution expenses	(76,032)		(65,916)
Administrative expenses	(63,814)		(64,692)
Other expenses, net	(4,037)		(9,905)
Fair value gains on investment properties, net	10	13,585		5,453
Finance costs	4	(1,156)		(1,414)
Share of profits and losses of associates	(689)		1,358
PROFIT BEFORE TAX	5	909		38,332
Income tax credit/(expenses)	6	9		(7,617)
PROFIT FOR THE PERIOD	918		30,715
ATTRIBUTABLE TO: Owners of the parent	835		30,770
Non-controlling interest	83		(55)
918		30,715
EARNINGS PER SHARE
ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE PARENT	7
Basic and diluted	HK0.04 cents	HK1.62 cents

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the six months ended 30 June 2017

Six months ended 30 June 2017 2016 (Unaudited) (Unaudited) HK$'000 HK$'000

PROFIT FOR THE PERIOD 918 30,715 OTHER COMPREHENSIVE INCOME/(LOSS)

Other comprehensive income/(loss) to be

reclassified to profit or loss in subsequent periods:

Exchange differences on translation of

foreign operations 24,259 (22,337)

Share of other comprehensive income of

an associate 237 70

Net other comprehensive income/(loss) to be

reclassified to profit or loss in subsequent periods 24,496 (22,267)

Other comprehensive loss not to be

reclassified to profit or loss in subsequent periods:

Remeasurement of net pension scheme assets - (459)

OTHER COMPREHENSIVE INCOME/(LOSS)

FOR THE PERIOD 24,496 (22,726)

TOTAL COMPREHENSIVE INCOME

FOR THE PERIOD 25,414 7,989

ATTRIBUTABLE TO:
Owners of the parent	25,219	8,132
Non-controlling interest	195	(143)

25,414 7,989 CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 30 June 2017

Notes	30 June 2017 (Unaudited) HK$'000	31 December 2016 (Audited) HK$'000
NON-CURRENT ASSETS Property, plant and equipment	9	270,872	265,785
Investment properties	10	662,630	644,323
Properties under development	28,000	28,000
Prepaid land lease payments	18,697	18,389
Interests in associates	11,399	11,851
Available-for-sale investments Deposits for purchases of properties, and plant and equipment	96,083 9,516	96,083 8,662
Net pension scheme assets	2,372	2,372
Deferred tax assets	8,338	7,731
Total non-current assets	1,107,907	1,083,196
CURRENT ASSETS Inventories	97,116	79,466
Trade and bills receivables	11	535,061	497,235
Prepayments, deposits and other receivables	70,065	56,214
Structured deposits	19,749	98,666
Pledged deposits	5,215	2,268
Cash and cash equivalents	238,991	266,377
Total current assets	966,197	1,000,226
CURRENT LIABILITIES Trade and bills payables	12	216,488	214,208
Other payables and accruals	137,349	154,042
Due to an associate	2,800	2,800
Interest-bearing bank and other borrowings	161,959	154,324
Tax payable	12,519	17,313
Total current liabilities	531,115	542,687
NET CURRENT ASSETS	435,082	457,539
TOTAL ASSETS LESS CURRENT LIABILITIES	1,542,989	1,540,735